Journal of Software Engineering, Information and Communication Technology
Vol 2, No 2: December 2021

Segmentation of Credit Card Customers Based on Their Credit Card Usage Behavior using The K-Means Algorithm

Ichwanul Muslim Karo Karo (Telkom University)

Article Info

Publish Date
24 Feb 2022

Abstract

The intensity of credit card customers in making transactions has increased in the last 10 years in Indonesia. This is both a challenge and an opportunity for the Bank. Customer segmentation information is beneficial to reduce bad debts or increasing customer credit card limit capacity. This study aims to segment credit card customers based on their usage behavior with a clustering approach using the K-means algorithm. While the process of evaluating segmentation results using the silhouette index. Based on the experimental results, six groups are the best number of clusters. The six groups are shopping hobbies, payment process at maturity, payment by installments, withdrawing cash, buying expensive goods, and types that rarely use credit cards.

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Journal Info
Journal of Software Engineering, Information and Communication Technology
Website

Abbrev

SEICT

Publisher

Universitas Pendidikan Indonesia

Subject

Computer Science & IT Control & Systems Engineering Education Electrical & Electronics Engineering Engineering

Description

The Journal of Software Engineering, Information and Communication Technology promotes research in the broad field of science and technology (including such disciplines as Agriculture, Environmental Science, etc.) with particular respect to Indonesia, but not limited to authorship or topical ...